By KRISTINA PETERSON, JON HILSENRATH and MICHAEL S. DERBY:
After months of careful signaling, the Fed’s policy-making committee said it would buy $40 billion each month of agency mortgage-backed securities on an open-ended basis and said it could extend those purchases and buy additional assets if the job market doesn’t improve.
“If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved,” the Federal Open Market Committee said in a statement issued at the end of its two-day meeting.
via Fed to Buy More Bonds in Bid to Spur Economy – WSJ.com.
I guess I was wrong about the Fed holding off until after the election.